Chinese regulators summon Didi and other ride-hailing firms- PingWest

Chinese regulators summon Didi and other ride-hailing firms- PingWest

Chinese regulators summon Didi and other ride-hailing firms

17 hours ago

Chinese regulators have summoned 11 ride-hailing firms asking them to rectify non-compliant behavior.

Details: On September 1, the Ministry of Transport, along with Cyberspace Administration of China and State Administration of Market Supervision and other regulators, jointly interviewed the companies including Didi, Meituan, and state-baked T3.

When online car-hailing giant Didi, which owns about 90% of the market in China, was forced to stop signing up new users in July, its competitors took the opportunity to launch fierce attacks. T3 and Meituan rolled out a series of preferential measures to attract drivers and passengers.

“Recently, some companies have engaged in destructive competition, disrupting the fair competition market order, affecting the safety and stability of the industry, and harming the legitimate rights and interests of drivers and passengers," the Ministry of Transport pointed out.

Ride-hailing platforms should not entice drivers to join through fake promotions or transfer any business risks to drivers, the regulators said, adding that drivers should also have enough rest time and companies should reduce the commission they take from each ride.

The regulator required that these platforms should check their own problems, rectify illegal behavior, safeguard market orders of fair competition, and create a sound environment for the healthy development of the ride-hailing industry. 

Context: China is now focusing more on social equity, advocating common prosperity, a bid to support moderate wealth for all. Increasing protection of the rights and interests of gig workers is a part of the initiative. Didi and Chinese e-commerce giant JD.com set up unions for their workers, according to Reuters. That’s a big move given organized labor is very rare in China.

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